This worksheet allows you to enter data directly from your W-2 forms. The numbers you enter will be carried automatically to the appropriate places throughout the tax return.
Only eight or ten numbers from the W-2 are used on your federal return. The rest are for your state tax return, or for IRS information only.
This form is used to report wages, tips, and other compensation; allocated tips; employee social security and Medicare taxes; and federal, state, or city income tax withheld. It is used to support credits shown on your Form 1040, Form 1040A, or Form 1040EZ.
The existence of a Form W-2 sometimes triggers the requirement to file an income tax return. For example, if you have any advance earned income credit payment shown in box 9, the IRS requires you to file a return.
Also, even if you do not have to file a tax return, you should file to get a refund if you have had federal income tax withheld (see box 2 ).
Note: This W-2 form supports decimal entries. If you enter an amount exactly as it appears on your W-2 form (that is, in dollars and cents), it will appear that way on the W-2 screen. When the entries are carried to Form 1040, the W-2 amounts will first be totaled, and then that total will be rounded to the nearest whole number.
Recalculate the return to carry amounts to other forms.
Your Federal Income Tax Withheld, which appears on box 2, is carried to Form 1040, 1040A, or 1040EZ as tax withheld.
In most cases, this should be the same amount as your wages in box 1 , but not more than $106,800. The most common reason for a difference is that certain contributions to a deferred compensation or retirement plan, such as a 401(k), are not included in box 1, but are included in box 3.
In most cases, this amount should be the same as your wages in box 1 . The most common reason for a difference is that certain contributions to a deferred compensation or retirement plan, such as a 401(k), are not included in box 1, but are included in box 5.
If the Statutory Employee box on line 13 is checked, your earnings will be carried to the wages line of Form 1040 or to a Schedule C (or C-EZ). You should designate on the face of Form W-2 the copy number of the Schedule C to which you want us to carry your statutory employee wages.
You should look carefully to see if this box is checked on your W-2. TaxCut uses it to decide whether you are able to deduct your IRA contribution.
Employers use box 14 for other information they want to give their employees. Examples of amounts that might be included in box 14 are union dues, health insurance premiums deducted from your pay, nontaxable income, and educational assistance payments made to you.
Mandatory contributions you made to the following state disability benefit funds are deductible as state income taxes on Schedule A if you itemize:
California Nonoccupational Disability Benefit Fund
New Jersey Nonoccupational Disability Benefit Fund
New York Nonoccupational Disability Benefit Fund
Rhode Island Temporary Disability Benefit Fund
Washington State Supplemental Workmen's Compensation Fund
Our W-2 Worksheet provides spaces for entering the amounts of such contributions. These amounts will automatically be carried to Schedule A if you itemize. If applicable, these amounts will also be carried automatically to your state return if you use a state version of our software.